GBM has banked a solid $1m from the sale of its remaining 50% interest in the non-core Malmsbury gold project in the Victorian Goldfields to Canada’s Novo Resources.

The sale comes as the company progresses operations in the Drummond Basin in northern Queensland which currently has JORC resources of about 1.84Moz of gold.

GBM Resources (ASX:GBZ) also retains exposure to Malmsbury through a 2.5% net smelter returns royalty as well as some 4 million Novo shares and 2 million options, which take the total consideration for the sale up to about $2.6m.

“The completion of the sale of GBM’s remaining interest in the Malmsbury Project to Novo realises value for GBM’s shareholders and continues the strategy of using sale proceeds from non core assets to repay the convertible note facility, if not converted,” managing director Peter Rohner said.

“Taking part consideration in Novo securities provides GBM with continued exposure to the project and to gold equities.”

Drummond Basin activity

GBM had in March unveiled a new geological model for its Yandan project in the Drummond Basin that presented the opportunity for a high-grade vein gold discovery.

It noted that future exploration will initially focus on confirming the new geological model and establishing vein texture, alteration, and metal zoning patterns to reconstruct the system and vector to the centre and feeder veins.

The results of this work will be used to define the most effective geophysics method and to confirm drill targets.

Yandan currently has a resource of 15.9Mt at 1 gram per tonne (g/t) gold for a contained resource of 514,500oz, almost half (47%) of which is in the higher confidence Indicated category.

In the December 2022 quarter, the company had also upgraded resources at the Twin Hills project from 760,700oz to 999,200oz due to a combination of new drill data, a new geological model and viewing the project as a standalone deposit.

High grade gold mineralisation at Lone Sister deposit remains open down plunge to the north, while bonanza grade mineralisation at 309 remains open down plunge to the west and south.

This article was developed in collaboration with GBM Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.